According to the federal indictment, the men allegedly made and caused others to make false representations in documents submitted to the credit unions, including loan applications, vehicle purchase orders, verifications of employment, income and credit history. The group used the loan proceeds to purchase automobiles from House and Rolling Auto Inc., a Plymouth, Ind.-based wholesale dealership that purported to be selling the luxury cars.

The indictment also stated the men allegedly agreed to find loans for borrowers in exchange for a fee of 20% to 30% of the total loan. If the borrowers refused to cash checks obtained as part of the scheme, Hughes allegedly threatened them with civil lawsuits and criminal prosecutions, according to prosecutors.

House allegedly deposited the loan funds into bank accounts he controlled in Illinois, California, and Georgia.